Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 5, Problem 5.3EX
Chart of accounts
Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows:
Accounts Payable | Inventory |
Land | |
Accumulated |
Miscellaneous Administrative Expense |
Accumulated Depreciation—Store Equipment | Miscellaneous Selling Expense |
Advertising Expense | Notes Payable |
Cash | Office Equipment |
Common Stock | Office Salaries Expense |
Cost of Goods Sold | Office Supplies |
Customer Refunds Payable | Office Supplies Expense |
Delivery Expense | Prepaid Insurance |
Depreciation Expense—Office Equipment | Rent Expense |
Depreciation Expense—Store Equipment | |
Dividends | Salaries Payable |
Estimated Returns Inventory | Sales |
Income Summary | Sales Salaries Expense |
Insurance Expense | Store Equipment |
Interest Expense | Store Supplies |
Interest Revenue | Store Supplies Expense |
Construct a chart of accounts, assigning account numbers and arranging the accounts in
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PA10. O 6.6 The following is the adjusted trial balance data for Nino's Pizzeria as of December 31, 2019.
NINO'S PIZZERIA
Adjusted Trial Balance
Year Ended December 31, 2019
Debit
Credit
$ 775,984
Cash
Accounts Receivable
Buildings
Merchandise Inventory
Accounts Payable
Common Stock
45,688
200,460
135,624
$437,880
410,542
Sales
555,696
Interest Revenue
84,652
Rent Revenue
86,900
Sales Salaries Expense
Office Supplies Expense
Sales Discounts
Interest Expense
Sales Returns and Allowances
24,500
6,270
102,890
4,577
105,854
122,853
Cost of goods sold
Rent Expense
Depreciation Expense: Office Equipment
Insurance Expense
Advertising Expense
Totals
20,000
10,555
2,780
17,635
$1,575,670
$1,575,670
A. Use the data provided to compute net sales for 2019.
B. Compute the gross margin for 2019.
C. Compute the gross profit margin ratio (rounded to nearest hundredth).
D. Prepare a simple income statement for the year ended December 31, 2019.
E. Prepare a multistep income statement for the year ended…
Required information
[The following information applies to the questions displayed below.]
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations
(December 31), the following financial data for the company are available:
Cash
Receivables from customers (all considered collectible)
Inventory of merchandise (based on physical count and priced at cost)
Equipment owned, at cost less used portion
Accounts payable owed to suppliers
Salary payable (on December 31, this was owed to an employee who will be paid on January 10)
Total sales revenue
Expenses, including the cost of the merchandise sold (excluding income taxes)
Income tax expense at 30% x pretax income; all paid during the current year
Common stock (December 31)
Dividends declared and paid during the current year
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of
operations.)
$ 25,600
10,800
81,000
42,000
46,140
2,520…
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:
Cash
Accounts receivable
Inventory
Estimated returns inventory
Office supplies
Prepaid insurance
Office equipment
Accumulated depreciation office equipment
Store equipment
Accumulated depreciation-store equipment
Accounts payable
Customer refunds payable
Salaries payable
Note payable (final payment due in 6 years)
Common stock
Retained earnings
Dividends
Sales
Cost of goods sold
Sales salaries expense
Advertising expense
Depreciation expense-store equipment
Miscellaneous selling expense
Office salaries expense
Rent expense
Depreciation expense-office equipment
Insurance expense
Office supplies expense
Miscellaneous administrative expense
Interest expense
$232,700
957,000
1,668,600
21,300
15,600
18,000
827,000
556,000
3,594,800
1,827,100
361,900
43,400
41,900
296,000
501,600
2,796,300
99,900
11,403,800
7,842,100
923,100
540,500
134,900
37,800
664,400…
Chapter 5 Solutions
Corporate Financial Accounting
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Who is responsible for freight when the terms of...Ch. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 5 - Gross profit During the current year, merchandise...Ch. 5 - Purchases transactions Elkhorn Company purchased...Ch. 5 - Prob. 5.3BECh. 5 - Prob. 5.4BECh. 5 - Transactions for buyer and seller Shore Co. sold...Ch. 5 - Adjusting entries Halm Flooring Company uses a...Ch. 5 - Asset turnover ratio Financial statement data for...Ch. 5 - Determining gross profit During the current year,...Ch. 5 - Determining cost of goods sold For a recent year,...Ch. 5 - Chart of accounts Monet Paints Co. is a newly...Ch. 5 - Purchase-related transactions The Stationery...Ch. 5 - Purchase-related transactions A retailer is...Ch. 5 - Purchase-related transactions The debits and...Ch. 5 - Purchase-related transactions Stylon Co., a...Ch. 5 - Prob. 5.8EXCh. 5 - Sales-related transactions, including the use of...Ch. 5 - Customer refund Senger Company sold merchandise of...Ch. 5 - Customer return and refund On December 28, 20Y3,...Ch. 5 - Sales-related transactions After the amount due on...Ch. 5 - Sales-related transactions The debits and credits...Ch. 5 - Prob. 5.14EXCh. 5 - Determining amounts to be paid on invoices...Ch. 5 - Prob. 5.16EXCh. 5 - Purchase-related transactions Based on the data...Ch. 5 - Prob. 5.18EXCh. 5 - Prob. 5.19EXCh. 5 - Normal balances of merchandise accounts What is...Ch. 5 - Income statement and accounts for merchandiser For...Ch. 5 - Adjusting entry for inventory shrinkage Omega Tire...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Income statement for merchandiser The following...Ch. 5 - Determining amounts for items omitted from income...Ch. 5 - Multiple-step income statement On March 31, 20Y9,...Ch. 5 - Multiple-step income statement The following...Ch. 5 - Single-step income statement Summary operating...Ch. 5 - Closing the accounts of a merchandiser From the...Ch. 5 - Closing entries; net income Based on the data...Ch. 5 - Closing entries On July 31, the close of the...Ch. 5 - Prob. 5.33EXCh. 5 - Prob. 5.34EXCh. 5 - Prob. 5.35EXCh. 5 - Discount taken in next fiscal year Using the data...Ch. 5 - Prob. 5.37EXCh. 5 - Rules of debit and credit for periodic inventory...Ch. 5 - Journal entries using the periodic inventory...Ch. 5 - Identify items missing in determining cost of...Ch. 5 - Appendix Cost of goods sold and related items The...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Appendix 2 Cost of goods sold Identify the errors...Ch. 5 - Closing entries using periodic inventory system...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income statement and balance sheet...Ch. 5 - Purchase-related transactions using periodic...Ch. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Prob. 5.9APRCh. 5 - Periodic inventory accounts, multiple-step income...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income statement and balance sheet...Ch. 5 - Prob. 5.7BPRCh. 5 - Prob. 5.8BPRCh. 5 - Prob. 5.9BPRCh. 5 - Periodic inventory accounts, multiple-step income...Ch. 5 - Comprehensive Problem 2 8. Net income: 741,455...Ch. 5 - Analyze and compare Amazon.com and Netflix...Ch. 5 - Analyze Dollar General Dollar General Corporation...Ch. 5 - Compare Dollar Tree and Dollar General The asset...Ch. 5 - Prob. 5.4MADCh. 5 - Analyze Home Depot The Home Depot (HD) reported...Ch. 5 - Prob. 5.6MADCh. 5 - Analyze J. C. Penney J. C. Penney Company, Inc....Ch. 5 - Prob. 5.1TIFCh. 5 - Prob. 5.2TIFCh. 5 - Prob. 5.5TIFCh. 5 - Prob. 5.6TIFCh. 5 - Prob. 5.7TIF
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